European Central Bank Banking Supervision has published its first quarter 2026 Supervisory Banking Statistics for 109 significant institutions. The data show that the supervised banking sector expanded further, with total assets rising to EUR 28.87 trillion from EUR 27.74 trillion in the fourth quarter of 2025, while profitability remained strong. Return on equity increased to 10.02% from 9.52%, net interest margin edged up to 1.54% from 1.52%, and year-to-date net profit reached EUR 49.87 billion. Asset quality improved slightly, with the non-performing loans ratio including cash balances at central banks and other demand deposits falling to 1.88% from 1.89%, while the share of stage 2 loans declined to 9.29% from 9.33%. At the same time, several prudential and liquidity indicators softened quarter on quarter. The Common Equity Tier 1 ratio fell to 15.99% from 16.26%, the total capital ratio to 20.11% from 20.40%, and the leverage ratio to 5.80% from 5.98%. The liquidity coverage ratio declined to 153.93% from 158.60% and the net stable funding ratio to 125.63% from 126.51%, while the loan-to-deposit ratio increased to 101.60% from 100.49%. Even with those declines, no institution reported a CET1 ratio of 10% or less, no institution had a leverage ratio of 3% or less, and none of the 108 institutions in the liquidity sample had a liquidity coverage ratio of 100% or less.

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